MNI BRIEF: BOE Bailey: UK Labour Market Still Very Tight

The latest labour market data showed that the market remained very tight and that recovery in labour supply was very slow, Bank of England Governor Andrew Bailey said Tuesday

Speaking to the House of Lords Economic Affairs Committee Bailey said that while the Bank's central model showed inflation coming back to below target they were "aiming off", anticipating that inflation would be more persistent and one reason was the structural change in the labour market.

Tuesday's data show that "we have a very tight labour market in this country. We have had a fall in the supply of labour, which is showing signs of recovering, but very slowly, frankly," he said. Bailey said that the MPC would get inflation back to target and the question was how much tightening would be required. The MPC is widely expected to hike again by 25 basis points at this month's meeting.